What Is One of the Best Consumer Goods Stocks to Hold for the Next 10 Years?
Key Points
MercadoLibre's competitive position is strengthening as it expands deeper into financial services.
Its revenue grew 49% year over year last quarter on a currency-neutral basis.
- 10 stocks we like better than MercadoLibre ›
MercadoLibre (NASDAQ: MELI) stock has been a phenomenal performer for investors. Over the last decade, a $10,000 investment would have grown to $176,000 at the time of this writing. Despite this run, the leading e-commerce operator in Latin America still has tremendous growth opportunity.
Wall Street continues to underestimate this high-growth business. Here's why investors could see substantial gains over the next decade.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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MercadoLibre is unstoppable
MercadoLibre's competitive moat continues to widen. It has successfully expanded beyond its core e-commerce marketplace by layering in other fintech services, including credit cards and mobile payments. It's creating a financial super app in one of the world's fastest-growing e-commerce markets.
It's for these reasons that the company continues to post numbers that are usually reserved for start-ups. Gross merchandise volume grew 35% year over year last quarter on a currency-neutral basis. This translated to year-over-year revenue growth of 49%.
With the stock trading at a price-to-sales multiple of 3.8, less than half its previous 10-year average of around 9.8, investors are getting solid value that can deliver market-beating returns. Analysts expect revenue to grow at an annualized rate of 21% through 2029, while expanding margins could lead to earnings growth of around 38%. MercadoLibre's growth could bring wealth-building returns to shareholders over the next decade.
Should you buy stock in MercadoLibre right now?
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.
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